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V1006-21 ·20 April 2021 ·consulta-vinculante Medium impact
Tax

Cancellation of mortgage debt via life insurance does not generate income for the surviving spouse

The taxpayer inquires about the taxation of a life insurance benefit that cancels part of a mortgage debt following the death of their spouse. The DGT determines that the spouse does not receive income, but must include the property at its fair market value in Inheritance Tax without deducting the cancelled debt.

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Lifecycle

2021-04-20PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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